What can students do to help improve Strategic Management of Resources (SMR) test results?
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1 What can students do to help improve Strategic Management of Resources (SMR) test results? Roger W. Harris, MS, CFPIM, CIRM, CSCP, C.P.M., PMP, CPSM VP of Education, APICS Colorado Chapter Terra Grande District Staff VP & GM, MSS Technologies, Inc.
2 Introduction Roger Harris Joined APICS in College 30 + years in APICS Colorado Chapter President multiple terms Currently VP of Education 8000 Supply Chain students over the years Currently employed at executive level 2 APICS Confidential and Proprietary
3 Agenda What is Strategic Management of Resources? What are the pass rates of SMR? How is SMR like fishing? What experience and knowledge will help the student? How can you prepare, what areas seem to be troublesome? Case study examples of professionals passing the SMR exam 3 APICS Confidential and Proprietary
4 Strategic Management of Resources Planning and managing resources such as materials, machines, facilities, labor, money, markets, customers, suppliers in a strategic fashion. Longer term and higher level thinking than operational or tactical planning or thinking. Many CPIM students and instructors don t have a lot of experience at the strategic levels of companies. Must look at the big picture of the environment, competitors, customers, products and the strategy to blend them together. Must understand how the big picture changes SCM priorities and techniques. 4 APICS Confidential and Proprietary
5 Current Worldwide pass rates for SMR 2014 the pass rate for SMR was 66% 2013 the pass rate for SMR was 54% 2012 the pass rate for SMR was 51% 2011 the pass rate for SMR was 51% These could include people taking it multiple times, so the numbers could really be worse Through student surveys, our students taking CPIM courses have an approximate pass rate of 82-85% at the Colorado Chapter 5 APICS Confidential and Proprietary
6 SMR pass rates Does it matter what order you take the exams for CPIM? Yes! This study is a couple of years old but still relevant. If you take the SMR as the 1 st exam: 33% pass rate SMR as the 2 nd exam: 38% pass rate SMR as the 3 rd exam: 53% pass rate SMR as the 4 th exam: 57% pass rate SMR as the 5 th exam: 72% pass rate 6 APICS Confidential and Proprietary
7 APICS research 100% Past Research SMR Pass Rates 75% 50% 25% 0% Age Ranges 7 APICS Confidential and Proprietary
8 Exams, ECM & Courseware I believe that the exams match the Exam Content manual for the most part Courseware matches the exam for the most part. Outside research or study may be required if a student needs additional knowledge as with any CPIM exam Some folks disagree with me here but I have taught the course dozens of times and taken the exam several times. 8 APICS Confidential and Proprietary
9 SMR THINKING is just like fishing! Fishing: What type of fish am I looking to catch? SMR: What business am I in? Fishing: What lake, pond or stream should I fish in? SMR: Where am I going to do business.. Global? Domestic? Local? Fishing: Where will the fish be feeding? SMR: Where should I look for customers.. What market segments? Fishing: What bait or equipment should I use for the particular time, place or species I am planning to catch? SMR: What marketing, pricing, differentiation or manufacturing strategy should I use for the particular product, market or customer? Fishing: Catch and Release or Keep and Eat? SMR: One Time Customer or Long Term Customer? 9 APICS Confidential and Proprietary
10 What knowledge or experience do students need? Statistics show that experience does matter! Experience in many areas of business, operations, planning/materials, sales and marketing and information technology Experience and knowledge in all three levels of management and planning strategic, tactical and operational Take the SMR exam as the last of the 5 CPIM exams Experience is not a guarantee to pass nor is it absolutely needed but it can help! 10 APICS Confidential and Proprietary
11 How should I study? Strategic Management of Resources Developing Business Strategy The Global Environment and Sustainability Operations Strategy Operations Strategy Choices and Financial Measurement Aligning Operations with Supply Chain Partners Infrastructure Systems Change Management Case Studies 11 APICS Confidential and Proprietary
12 How should I study? Take a chapter/partner CPIM SMR course Many areas are covered in the course you may not be 100% familiar with even if you have years of experience! We will talk about this more in the case studies. Use the participant guide as a basis for your study. Use outside materials as needed to supplement for specific subject matter. 12 APICS Confidential and Proprietary
13 What about textbooks? Many are available! Over $500 worth. Use the APICS Dictionary. I normally recommend that any text on the subject matter you need is good. For example, your marketing 101 text or sales management 101 text that you still have from a course you took long ago is probably still valid. Also any of the texts you have from the other CPIM modules. 13 APICS Confidential and Proprietary
14 What areas seem to be troublesome for many Supply Chain folks? Some sections seem to be very difficult for APICS people. These four are the most common from my experience: SMR Section 1 Developing Business Strategy aka Sales and Marketing SMR Section 2 Sustainability and Corporate Social Responsibility SMR Section 6 Infrastructure Systems----ERP SMR Section 7 Change Management / Project Management 14 APICS Confidential and Proprietary
15 SMR Section 1 Developing Business Strategy A lot of sales and marketing material. Most students do not have a lot of sales and marketing experience. My experience shows me that many students need extra study for Sales strategy and to see how it can change your supply chain priorities. 15 APICS Confidential and Proprietary
16 SMR Section 1 External environment Industry effectiveness and profitability The industry s dominant economic features Strength of competitive forces facing industry members Key factors for future success in the industry Assessing the external environment Forces driving industry change Likely strategic moves by mass Market positions occupied by industry members 16 APICS Confidential and Proprietary
17 SMR Sales and Marketing Five-Forces Analysis Firms in other industries offering substitutes Suppliers of raw materials, parts, component s, or other resource inputs Competitive pressures stemming from supplier bargaining power and supplier and seller collaboration Competitive pressures coming from attempts of companies outside the industry to win buyers over their products/services Rivalry among competing sellers Competitive pressures created by jockeying for better market position, increased sales and market share and competitive advantage Competitive pressures stemming from buyer bargaining power and buyer and seller collaboration Buyers Competitive pressures coming from the threat of entry of new rivals 17 APICS Confidential and Proprietary Potential new entrants Source: Crafting & Executing Strategy 18 th edition
18 SMR Sales and Marketing 18 APICS Confidential and Proprietary
19 SMR Sales and Marketing 19 APICS Confidential and Proprietary
20 SMR Section 1 Developing the Business Strategy Spend time studying SWOT Spend time studying the strategies of others and WHY? Competitors Suppliers & Customers Spend time studying about the environment Regulations, trends, technology, etc. Look at the attractiveness of your industry to entrants and WHY? What is your chosen competitive strategy and WHY? 20 APICS Confidential and Proprietary
21 SMR Section 2 CSR and Sustainability Corporate Social Responsibility Somewhat of a new title for something that has been going on for decades. APICS folks may not be involved in this in their day to day activities at the company. Most Successful when part of the Corporate Strategy Sustainability Sustainability influences social well being, environmental health, and economic performance today and in the future 21 APICS Confidential and Proprietary
22 Section 2 Corporate Social Responsibility 22 APICS Confidential and Proprietary
23 Section 2 Sustainability 23 APICS Confidential and Proprietary
24 SMR Section 6 Infrastructure Systems Experience implementing or selling ERP systems can help here Areas that need a little extra time and study: ERP systems and the evolution and strategy and WHY? ERP implementations Pull system, Where and When strategy applies There a lot of other sections to infrastructure but many were covered well in other modules 24 APICS Confidential and Proprietary
25 SMR Section 6 ERP MRP MRP closed loop MRP II ERP MRP processor Closed-loop feedback Best-practice processes Common database Sales and operations planning Total cross-functional software and process integration 25 APICS Confidential and Proprietary
26 Supply Chain Management Leveraging ERP Systems Advancements in ERP (From APICS CSCP Course) AIDC SRM CPFR R&D Product engineering Maintenance management QM Cross-industry/ specific-industry concepts Supply chain management Manufacturing engineering HR Advanced costing Enterprise production systems Production activity control Inventory management BPM Advancements in ERP CRP Purchasing Environmental MES Financial planning Enterprise Resources Planning (ERP) Manufacturing Resource Planning (MRP II) Material Requirements Planning (MRP) Standard costing S&OP APS Accounting A/P, A/R, GL Supply chain execution Executive decision support Forecasting Order entry Customer service Master scheduling Full JIT support EDI Strategic plan Supply chain Field service Marketing Web-based, open, componentbased environment Collaborative commerce Demand management Full sales support Logistics and distribution External interfaces CRM EAI 26 APICS Confidential and Proprietary
27 SMR Section 7 Change Management Cultures of Strategic Change If you are a change consultant/expert, you may not have trouble with this section Risk Management If you are risk management certified you may be fine in this section Project Management If you are a certified project manager you are probably fine with this section If not, you need extra attention here. 27 APICS Confidential and Proprietary
28 SMR Section 7 Approaches to Strategic Change Reactive Approaches Actions Plan Reacting to change Respond to rivals Respond to buyers Adjust to new policies React as needed Defend position Anticipating change Analyze prospects Research buyer needs and preferences Monitor technology Plan ahead for expected future changes Proactive Leading change Pioneer new technologies Be innovative Set industry standards Seize the offensive Set the pace of change Influence rules Force rivals to follow 28 APICS Confidential and Proprietary Source: Crafting & Executing Strategy 18 th edition
29 Low High SMR Section 7 Risk of Failure Avoid Less-likely failures with high impact More-likely failures with high impact Less-likely failures with low impact More-likely failures with low impact Goal Low Likelihood High 29 APICS Confidential and Proprietary Source: Operations and Program Management, Reprinted by permission of Pearson Education
30 SMR Section 7 Phases of a Project 30 APICS Confidential and Proprietary
31 SMR Section 7 Project Statement of Work (SOW) & Work Breakdown Structure (WBS) 31 APICS Confidential and Proprietary
32 SMR Section 7 Change Management Pay attention to the following: The strategic value of change The roles of people and leaders in change The potential risks and failures and the impact they have during change Project management for change: Definition of a project Phases of a project Statements of work (SOW) Work breakdown structures (WBS) Controlling projects Closing out projects 32 APICS Confidential and Proprietary
33 Examples of Success The following folks are APICS folks that had some trouble with SMR. All took the SMR exam multiple times All were discouraged with their progress All are real APICS people, Supply Chain Professionals and All passed the exam and achieved CPIM! 33 APICS Confidential and Proprietary
34 Real examples of students that followed this formula Dan---10 years experience as a planner buyer Scored on first four CPIM exams Failed SMR 3 times Did not have a copy of the Participant guide for CPIM Took all classes of CPIM but SMR Was very discouraged with not being able to pass SMR Talked for (2) one hour sessions about sections 1, 2, 6, 7 Passed SMR with a APICS Confidential and Proprietary
35 Real examples of students that followed this formula Betty---16 years experience in the food/beverage Mfg. and transportation Failed SMR 3 times Did not take CPIM classes as they were not offered in this area of Spain Took 7 years to get through the exams, 2-3 times to pass each exam Did not think the Participant Guide for SMR seemed difficult Had an old version of SMR Participant Guide Reviewed sections 1, 2 for (2) one hour sessions Passed SMR! 35 APICS Confidential and Proprietary
36 John---12 years experience in SCM & a commercial pilot working in Supply Chain Management Failed SMR exam 3 times Attended all 5 CPIM Courses from a Chapter No problem with the first 4 CPIM exams Used DataChem CD s Purchased over $1200 of study material SMR Terminology was a problem Reviewed sections 1, 2, 6, 7 for (3) one hour sessions Used Real Life Examples Passed SMR exam 36 APICS Confidential and Proprietary
37 Real examples of students that followed this formula Sam---6 years experience in the cheese industry. Progressively more responsibility in Supply Chain Management. Degree in Supply Chain Management from a great SCM School Up and coming future supply chain executive Very easy for him to pass the first 4 exams without too much effort Failed SMR 2 times Attended all CPIM classes offered by a Chapter Used Participant guides and ECM and some texts Reviewed sections 1 and 7of SMR for 2 hours Passed SMR Exam 37 APICS Confidential and Proprietary
38 Real examples of students that followed this formula Dave---30 years experience as a Operations and Supply Chain Manager with large companies Had no problem with any of the other 4 CPIM exams Failed the SMR on multiple occasions Had taken the SMR course Had purchased many texts Reviewed SMR sections 1,6,7 as well as a couple of other sections where there were questions Spent 6 hours reviewing the student guide Introduced real life examples for areas of concern Passed the exam without much problem 38 APICS Confidential and Proprietary
39 Real examples of students that followed this formula Barb---20 years of operations, quality and accounting experience with a small company Had no problem with any of the other 4 CPIM exams Failed the SMR on multiple occasions Had taken the SMR course Had purchased multiple study materials Reviewed SMR sections 1, 2, 6, 7 as areas of concern Spent about 3 hours reviewing the student guide and real life examples Passed exam without issue 39 APICS Confidential and Proprietary
40 Real examples of students that followed this formula Joe---15 years experience in materials management including a director level position at a medium sized company Had no problem with any of the other 4 CPIM exams Failed the SMR twice Had taken the SMR course twice Did not want to review SMR sections 1, 6 and 7 Told them that was the only way I would help them was my formula Reviewed SMR sections 1, 6, 7 as well as looked at quizzes from other sections Spent about 4 hours reviewing student guide and real life examples Passed exam without issue 40 APICS Confidential and Proprietary
41 Real examples of students that followed this formula Abe---20 years experience in production management Had no problem with self study on any other CPIM exams Failed the SMR twice Had not taken any CPIM courses Did not have a copy of the student guide Purchased over $2000 in study materials Reviewed SMR sections 1, 6, 7 and all the quizzes and areas of concern Spent 7 hours on this review Passed 41 APICS Confidential and Proprietary
42 Conclusions To pass, one must think strategically Many students don t have experience with: Sales and Marketing Strategy Infrastructure strategy & ERP strategy Change and Project Management The Participant Guide for SMR is a great tool when used with real examples and emphasis is placed on areas where the student may not have experience I believe real life business examples help students understand much better 42 APICS Confidential and Proprietary
43 Clarifications This presentation is the opinion of Roger Harris 34 years experience in APICS 32 years experience in Business/SCM/Operations Many successful CPIM/SMR students Thousands of CPIM students served.more to go! I have helped many people that were not my own students originally Opinions formed are from my own students experience and difficulty and other peoples experience and difficulty with the SMR exam This concept to concentrate on 4 areas of SMR assumes that you have a good understanding of the other more SCM/Operations based areas covered by the exam. 43 APICS Confidential and Proprietary
44 Information and References APICS SMR CPIM Instructor Guide APICS SMR CPIM Participant Guide One slide from the APICS CSCP Program APICS Age/Pass Rate Research Project Roger Harris, trial and error experience Fishing APICS Confidential and Proprietary
45 Thank you, thank you very much! Roger W. Harris, MS, CFPIM, CIRM, CSCP, C.P.M., PMP, CPSM Past President, APICS Colorado Chapter VP & GM, MSS Technologies, Inc. 45 APICS Confidential and Proprietary
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